The bottom is on the recent return of Bitcoin, says Willie Woo

Bitcoin (BTC) price is likely in a sharp pullback from last week's new all-time highs, according to popular price analyst Willy Woo.

The analyst offered a list of “good news” and “bad news” around Bitcoin fundamentals on Thursday, comparing the asset's recent rally to past bull market cycles.

Has Bitcoin Been Expanded Yet?

Woo started by looking at the on-chain Bitcoin Cost Output Profit Ratio (SOPR), which assesses whether the average Bitcoin transaction is currently making a profit or loss. The ratio recently rose to the highest level not seen since January 2021, foreshadowing higher gains and a longer period of consolidation.

After touching $74,000 last week, the property slipped to $61,000 on Wednesday and is now slightly back to $65,200. The 17% retracement is reminiscent of when Bitcoin broke all-time highs during its previous cycle, followed by a 31% correction at the time.

“IMO this is a common pre-pump emergency, requiring weak arm shaking,” Woo wrote.

Bitcoin's “expected income flow” appears to have bottomed out – a measure of the market's expected buying pressure based on Bitcoin's 24-hour simple moving average.

But all is not looking bleak: long interest is still built in the Bitcoin Perpetual Futures market, which is still expected to drop 10% to 20% before returning to normal range.

Woo noted that March has historically been a sideways trading month, and April could be “cut both ways” based on current data. In the longer term, the macro structure “remains weak,” he said.

“It's generally a game of patience. The bottom of the short-term consolidation is probably in,” the analyst concluded. “There's a chance we could end up in the semis, which would normally result in lower volatility.”

Bitcoin ETF Reversal

According to CryptoQuant's on-chain analysis, Bitcoin miners have increased their BTC sales in recent months, profiting as the coin appreciates in value. Even short-term holders are starting to profit, typically mimicking patterns seen during earlier cycle peaks.

Bitcoin spot ETFs in the United States have also seen an unprecedented wave of outflows this week, losing more than $700 million in the past three days alone.